Steven Rattner, the former Quarangle PE boss turned car czar, who is now caught up in scandal related to kickbacks in the New York pension scheme, is fighting an SEC attempt to ban him from the industry for three years, according to Michael Barbaro at NYT.

Rattner, who is accused by the SEC and by AG Andrew Cuomo of having improperly paid off someone connected with Albany in order to win business (by helping to distribute the film Chooch), is apparently fighting the ban tooth and nail.

But Mr. Rattner has fiercely resisted the proposed penalty, setting up a face-off with the federal government, according to these people, who spoke on the condition of anonymity because the negotiations are intended to be confidential.

It would be the most severe penalty for any of the Wall Street executives ensnared in the wide-ranging pension investigation, and it would carry a significant stigma for Mr. Rattner, whose rise in high finance catapulted him to the top of New York’s social and political hierarchy.

Earlier this year the SEC settled charges with Quadrangle, but if you recall Rattner was specifically left out of that settlement. According to this report, his unwillingness to accept a ban was the reason why, and now the SEC is weighing whether to bring an enforcement action or drop its case.